Treasurer Training

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Treasurer Training

• Chapter Finances Made Simple

October 04, 2008
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Treasurer Training

• PSE provides this information as a service to its
  chapters. It is
• important that we be fiscally responsible with
  the money our members
• pay to us, and have safeguards in place that will
  protect and ensure
• that money is spent appropriately and with
  authorization.
• We will be discussing budgets, forms and
  requirements from the state
• organization and from the IRS that must be
  followed.
• Adequate and effective internal controls require
  a separation
• of functions and responsibilities among a number
  of individuals who
• are actively involved in the financial process
  and who provide a system
• of checks and balances over each others
  activities. We must try to
• prevent the misuse or embezzlement of funds.

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Welcome Treasurers!

• Starting off on a good note!
• If your chapter sends a delegate to PSEs annual
  convention, the chapter will receive 5 of their
  dues back bi-monthly.
• The state office needs to know who this rebate
  check should be mailed to. Your executive board
  decides that and contacts either the state
  office, or your regional office.

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Treasurers Check Books

• When a new treasurer is elected, they need to get
  onto the chapters
• checking account. A motion needs to be made at a
  chapter meeting
• authorizing who can sign the checks and whose
  name should be
• removed from the checking account. A copy of
  these minutes must be
• signed by the leadership and taken to the bank to
  ensure the transfer of
• signing authority.

Please review your bylaws for the role of the
treasurer and who has authority to debit the
chapters account. 1) Keybank offers PSE
chapters free checking. For more info contact
Pat Carlson _at_ pcarlson_at_pseofwa.org, or
253-876-7416.
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• Chapter leaders should prepare and present a
  simple budget to the group at the last chapter
  meeting before summer. This budget should be for
  the upcoming school year, and you should have it
  ratified by the membership.
• Chapter leaders should prepare and present a
  simple year-end financial statement to the group
  at the first chapter meeting of the fall,
  covering the previous school year.

The chapter treasurer should take the lead on
these projects, but should not be made to carry
the whole load. All the officers should help, or
you should appoint a finance committee from the
members to help.
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Setting The Chapter Budget

• Your Chapter Budget Shows
• 1) you have on hand
• 2) you expect to receive
• 3) you expect to spend.
• Remember that the Budget comes in
• advance of spending. It doesnt
• have to be complicated.
• Example Most chapters probably
• dont have income from more than
• two or three sources, such as PSE rebates,
• chapter dues, and fundraising events.

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Yearly Chapter BudgetProjection Instructions

• This is the perfect time to bring your
  Executive Board together before each new year
  begins, set the budget and make goals for the
  coming year.

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You need to be prepared for this meeting by
bringing the following items with you

• Calculator, Paper and pencil,
• Copy of your current Contract and Bylaws

Treasurer should bring

• Checking and saving account registers from the
  past year
• Bank statements
• Last years Yearly Chapter Financial Report

• Know what events your members attended and how
  many attended the function.
• What are your goals for the year?
• What new things do you want to plan for and how
  many members will be involved?
• Any new ideas or goals for the upcoming year?

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Yearly Chapter Budget ProjectionsFor the School
Year 20__ - 20__

• REVENUE (income received) Last
  year Projection for this year
• of chapter members _______ ______________
  ____
• Local Dues
  _______ __________________ Rebates _______ ______
  ____________
• Fund Raising _______ ________________
  __
• Interest _______ __________________
• Other income _______ ________________
  __
•   Funds Carried-over _______
  _________________
• Total Revenue

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• EXPENDITURES
• Expenditures (expenses you incurred) Last
  year Projection for this year
• Office expenses _______ __________________
  
• Officer expenses _______ ____________
  ______
• Convention expenses _______ _______________
  ___
• How many delegates do we send?
• Scholarships _______ __________________
• Sunshine Fund Gifts/Cards
  _______ __________________
• Miscellaneous expenses _______ ___________
  _______
• Salary reimbursement _______
  _________________
• Dues reimbursement _______
  _________________
• Political Contributions (List them separately)
• Name _______ __________________
• Name _______ __________________
• Name _______ __________________
•  
• Total Expenditures

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• Total projected revenue ______________
• Total projected expenses (minus) ______________
• Total projected
• balance for the year ______________
• Funds carried-over into following year _________

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Spending the Money

• Spending should be broken into categories.
• Some examples are
• convention expenses,
• Legislative conference,
• scholarships,
• sunshine fund gifts/cards,
• and miscellaneous.

• The Financial Report Shows
• you had on hand
• you received
• you spent
• you had left over.

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• Chapters should only spend money through a
  checking account with two signatures required.
  Suggestion is to have treasurer and one of the
  other executive officers sign on each check.
  Checks written to an officer should not be signed
  by that person. So you may want to have three
  people on authorized to sign checks.

• If you have both a savings and checking account,
  funds should only be withdrawn from savings
  through a transfer to checking.
• The executive board should review all chapter
  bank statements at least quarterly to ensure that
  all expected deposits are being made, and that
  each transfer from savings shows up as a deposit
  into checking account.

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Financial Reports

• A treasurers report should be prepared as
  required by your chapter bylaws and presented at
  each chapter meeting.

This report should include dates of the
reporting period, cash and savings balance as of
the last report, total revenues and expenditures
during the period, and the new cash and savings
balance. The report is dated, signed and
submitted to the members for their approval, with
a signed copy going to the secretary for the
record. These reports are retained with the
chapters historical files for 7 years.
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Treasurers Report
Sample

• Checks paid
• Date Who to Why How much
• 9/4/07 Local florist Annes bday
  35.72
• 9/12/07 Anne Convention mileage
  73.42
• 10/15/07 Anne Treats for Chptr Mtng
  42.17
• 12/15/07 PSE Registration Leg Conf
• Anne, Debbie, Rey
  525.00
• Total checks paid 676.31

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Treasurer's report continued
sample

• Income
• Date From Why Amount
• 9/5/07 PSE Dues Rebate
  545.00
• 9/28/07 Car wash Fundraiser 102.50
• 9/17/07 Interest Savings 3.12
• Total Income 650.62

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Treasurer's report continued
sample

• Previous Balance Aug/08 347.16
• Income from Sept - Dec 650.62
• Total 997.78
• Checks Paid Sept Nov 676.31
• Balance December 17, 2008 321.47
• For every expenditure, check written, there must
  be a receipt to
• accompany that check. If there is no receipt
  have the person
• who spent the money write down, where, what and
  why the money was
• spent, have them sign it and keep it with your
  records.

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Financial Reports cont.

• Annual reports are then prepared from the
  monthly/quarterly reports.
• Annual reports are retained permanently by the
  chapter.
• Chapters submit their annual chapter report to
  the state office by October 31st.
• This information will be included in the IRS
  group 990 report, a service offered to chapters
  by the state office.

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• During the school year, keep a simple record of
  each expenditure. These expenditures can be
  reviewed during chapter meetings as part of the
  treasurers report. (Treasurers Report)
• Chapters should appoint an audit committee to
  review the financial statement and bank records.
  This should be done in the fall each year.
• The audit committee members should be people who
  did not take part in preparing the financial
  statement.

All members have the right to review (look at)
chapter records (not photocopy).
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Performing the Audit
The purpose of an audit is to verify that all
the money received by the chapter was deposited,
and all money spent by the chapter was duly
authorized. To begin you should have your audit
committee, the chapters checkbook, ledger sheet
and the past years bank statements. The audit
committee should review each check written,
verify that it was written for the amount
authorized, it was signed by the appropriate
person(s), and there is a receipt or
written/signed explanation for the payment. The
purpose is simple verify the dues received was
deposited, the money was appropriately spent and
the checkbook balances. If you have a savings
account you will need to review and verify all
activity for that account also. The treasurer is
there to answer questions, NOT to perform the
audit. Each member of the audit committee should
sign the final audit and give the treasurer a
copy for the chapters records.
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Member Records

• Accurate member records can be useful in
  projecting budget
• revenues. By knowing your total number of
  members and dues they
• pay, you can figure your projected dues rebate
  when you send
• someone to convention.
• It is important that chapter treasurers work with
  the chapter
• membership officer and with the regional office
  to maintain
• current membership records.
• 1) Local Dues
• 2) School Board Minutes

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Record Keeping - How Long?

• Treasurers are responsible for maintaining a
• file with all receipts and copies of invoices
  paid.
• Accounts payable ledgers are required to be
  retained for 7 years,
• Tax reports and checks for taxes must be retained
  permanently.
• Bank reconciliations need to be retained for 7
  year,
• Cancelled checks must be kept for 7 years.

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Private Sector Chapters

• Chapters whose members work for
• private sector employers must also file
• (each year) an LM-2 report with the U.S.
• Department of Labor.
• If you are a private sector chapter and
• would like assistance please contact the
• state office

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Tax Identification

• Each chapter has an IRS tax identification
  number. This is known as an SS4.
• If you do not have this number you can contact
  Kathy Stewart at the state office
  kstewart_at_pseofwa.org, or1-866-820-5652.
• This tax ID number should be used on all
  accounts maintained with whatever bank(s) the
  chapter uses.
• It should be kept in a permanent file.

You will need this number to fill out your IRS
990 or 990N form.
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Tax Identification cont.

• When a chapter is organized the state office
  sends the
• SS4 report to the chapter president for
  signature, they send
• it to the IRS and the IRS sends it back to the
  state office.
• The state office sends a copy to the chapter and
  maintains
• the original.

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New IRS Rules
Starting in 2008, the IRS is requiring each
chapter to file a report. If your chapter
received more than 25,000 in revenue in 2007/08
you must file a form 990. The state office will
help facilitate your filing the 990. If your
chapter received less than 25,000 in revenue in
2007/08 a form 990N is required. The state office
will file your 990N for you. Receipt of the
annual chapter financial report will trigger the
filing of the 990N. These reports must be filed 4
months after the close of the chapters fiscal
year. Non filing of the form may affect your
exempt status.
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Yearly Chapter Financial Report
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Check Off List
Annual Tax Period 9/1/07-8/31/08 Employer
Identification Number (EIN) _________________C
hapter Legal Name _______________________________
__________________________ Chapters Mailing
Address _________________________________________
________________ ____________________________
_____________________________ Chapter
President _________________________
________________________________
Address _______________________________________
___________________ _________________________
_________________________________ Email
address (if applicable) ________________________
_________________________________
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Items to provide
(Please return this completed list with the
materials) Accounting records 1) Provide a
photocopy (or printout) of the Chapters
checkbook for the period from SEPTEMBER 1, 2007
through AUGUST 31, 2008. ? Item completed
2) Provide copies of monthly or quarterly
statements and reconciliations for all bank
accounts, CD's, and investment accounts, for the
period from SEPTEMBER 1 through AUGUST 31. ?
Item completed 3) Mail information to Public
School Employees of Washington Attention
Accounting P.O. Box 798 Auburn, WA 98071 by
October 31, 2008.? Item completed
_____________________________ __________________
_Preparers Signature
Chapter TitlePhone ( )
________________________ All chapters must
file a 990/or 990N. Non filing of the form may
affect your exempt status. If your chapters
income is under 25,000.00 the state office will
file your 990N for you. If your income is over
25,000.00 the state office will help facilitate
you filing your 990.Receipt of the Yearly
Chapter Financial Report will trigger the filing
of the 990.
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Questions?

• The administrative services department
• at state headquarters is available for
• advice and consultation to chapter
• treasurers.
• Contact Pat Carlson at the state office
• 1-866-820-5652 or pcarlson_at_pseofwa.org, with
  your questions.

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For your service to your chapter For your
service to PSE And for all your efforts on
behalf of your co-workers and fellow PSE members!
YOU DESERVE A MEDAL